The shipping giant Maersk has confessed to deception in its handling of the scrapping of vessels on the Indian and Bangladeshi coast in 2014, having both publicized against it whilst also participating in and encouraging another company to participate in it.
Maersk sent vessels to scrap, influencing the German company MPC Capital to end a stipulated contract with 14 ships and have them scrapped, where the steel would get the maximum possible price (US$447 a tonne), in India and Bangladesh whereas the shrapnel from the scrapped vessels poses serious risks to both people and the environment.
Trond Westlie, CFO and Maersk Executive Board Member, said “In this agreement, it is clear that our influence went the wrong way, and that this type of influence is unfortunate. This is something we should not be doing. We acknowledge that we should not have entered an agreement encouraging the owner to seek out the highest steel price possible.”
It is not clear whether Maersk will further receive any legal consequences related to this scrapping issue.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Port Technology International
